Document background
The Deferred LC is a crucial trade finance instrument used when buyers require extended payment terms while ensuring sellers receive a bank-backed payment commitment. Under Austrian law, this document combines local legal requirements with international banking standards, particularly UCP 600 and Austrian Commercial Code (UGB) provisions. It's typically used in international trade transactions where the buyer needs time to pay after receiving goods, while the seller obtains a secure payment promise from a bank. The document specifies the deferred payment period, usually 30-180 days after document presentation, and includes detailed requirements for document presentation, examination criteria, and payment terms. This structure provides security for cross-border trade while accommodating cash flow requirements of trading parties.
